MIRA INFORM REPORT

Report Date :

26.03.2008

IDENTIFICATION DETAILS

Name :	JAISREE IMPEX PTE LTD

Registered Office :	64 Cecil Street, #06-04, Iob Building

Country :	Singapore

Financials (as on) :	31.03.2007

Date of Incorporation :	^11/04/2001

Com. Reg. No.:	^200102422Z

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Trading in pepper and other spices and related product

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

JAISREE IMPEX PTE LTD

Line Of Business

TRADING IN PEPPER AND OTHER SPICES AND RELATED PRODUCT

Parent Company

---

Financial Elements

FY 2007

COMPANY

Sales : S$65,959,362

Networth : S$2,848,828

Paid-Up Capital : S$1,801,550

Net result : S$267,968

Net Margin(%) : 0.41

Return on Equity(%) : 9.41

Leverage Ratio : 5.03

COMPANY IDENTIFICATION

^{Subject Company : JAISREE IMPEX PTE LTD}

^{Former Name : -}

^{Business Address: 64 CECIL STREET}

^#06-04

^{IOB BUILDING}

^{Town: SINGAPORE}

^{Postcode: 049711}

^{County: -}

^{Country: Singapore}

^{Telephone: 6325 4160/63254161}

^{Fax: 6325 4162}

^{ROC Number: 200102422Z}

^{Reg. Town: -}

SUMMARY

^{All amounts in this report are in: SGD unless otherwise stated}

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 11/04/2001}

^{Previous Legal Form: -}

^{Summary year : 31/03/2007}

^{Sales: 65,959,362}

^{Networth : 2,848,828}

^{Capital: -}

^{Paid-Up Capital: 1,801,550}

^{Employees: 3}

^{Net result : 267,968}

^{Share value: -}

^{AUDITOR: T
RAVI & CO.}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 11/04/2001}

PRINCIPAL(S)

^{MADASAMY THANGASAMY A7948668
Director}

DIRECTOR(S)

^{MADASAMY THANGASAMY A7948668
Director}

^{Appointed on : 11/04/2001}

^{Street : 312 RIVER VALLEY ROAD}

^#01-06

^{VILLE ROYALE}

^{Town: SINGAPORE}

^{Postcode: 238352}

^{Country: Singapore}

^{THANGASAMY LAKSHMI S2728284I
Director}

^{Appointed on : 29/08/2003}

^{Street :
312 RIVER VALLEY ROAD}

^#01-06

^{VILLE ROYALE}

^{Town: SINGAPORE}

^{Postcode: 238352}

^{Country: Singapore}

^{THANGASAMY LAKSHMI S2728284I
Company Secretary}

^{Appointed on : 13/10/2007}

^{Street : 312 RIVER VALLEY ROAD}

^#01-06

^{VILLE ROYALE}

^{Town: SINGAPORE}

^{Postcode: 238352}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{CLIFFORD EMMANUEL GERMAIN S2191478I}

^{SELVAMUTHU KATHIRAVAN A3839911}

^{THANGASAMY JAISUDHA A4446304}

^{SIVAPUNIAM S/O VEERASAMY RAMASAMY S0027054G}

^{K. GANGA THARAN 179217}

ACTIVITY(IES)

^{PEPPER DEALERS Code:16210}

^{SPICES
Code:20000}

^{TYRE DEALERS - RETAIL Code:22740}

^{TIMBER - WHSLE Code:21690}

^{FERTILIZERS - WHSLE And MFRS Code:8710}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF PEPPER AND OTHER SPICES}

^{2) WHOLESALE OF MEDICINAL AND PHARMACEUTICAL
PRODUCTS (WESTERN)}

CHARGES

^{Date:
06/10/2006}

^{Comments :
CHARGE NO:
C200606712}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S):
MALAYAN BANKING BHD}

^{Date: 24/04/2007}

^{Comments : CHARGE NO: C200703062}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S):
INDIAN BANK}

^{Date: 11/07/2007}

^{Comments : CHARGE NO: C200705401}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S):
MALAYAN BANKING BHD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{MALAYAN BANKING BHD}

^{INDIAN BANK}

SHAREHOLDERS(S)

^{MADASAMY THANGASAMY 1,791,550 Private Person}

^{Street : 312 RIVER VALLEY ROAD}

^#01-06

^{VILLE ROYALE}

^{Town:
SINGAPORE}

^{Postcode:
238352}

^{Country:
Singapore}

^{THANGASAMY LAKSHMI 10,000 Private Person}

^{Street : 312 RIVER VALLEY ROAD}

^#01-06

^{VILLE ROYALE}

^{Town: SINGAPORE}

^{Postcode: 238352}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{SELVAMUTHU KATHIRAVAN 200,000}

^{THANGASAMY JAISUDHA 190,000}

^{SIVAPUNIAM S/O VEERASAMY RAMASAMY 1}

^{K. GANGA THARAN 10,000}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation: AVERAGE}

FINANCIAL ELEMENTS

^{All amounts in this report are in: SGD}

^{Audit Qualification: UNQUALIFIED (CLEAN)
UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 15/10/2007}

^{Balance Sheet Date: 31/03/2007 31/03/2006}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^ASSETS

^{Tangible Fixed
Assets: 5,038 3,016}

^{Total Fixed Assets}^{: 5,038
3,016}

^{Receivables: 7,271,129 7,102,374}

^{Cash,Banks,
Securitis: 2,375,297 1,500,172}

^{Other current assets: 7,536,365 5,385,128}

^{Total Current Assets}^{: 17,182,791 13,987,674}

^{TOTAL ASSETS: 17,187,829 13,990,690}

^LIABILITIES

^{Equity capital: 1,801,550 1,801,550}

^{Profit & loss
Account: 1,047,278 779,310}

^{Total Equity}^{: 2,848,828 2,580,860}

^{Trade Creditors: 13,713,776 10,395,828}

^{Prepay. & Def. charges: 99,978 126,646}

^{Advanced payments: 83,945 72,569}

^{Due to Bank: 240,315 137,586}

^{Provisions: 26,080 43,800}

^{Other Short term Liab.: 174,907 633,401}

^{Total short term Liab}^{.: 14,339,001 11,409,830}

^{TOTAL LIABILITIES: 14,339,001 11,409,830}

^{PROFIT
& LOSS ACCOUNT}

^{Net Sales 65,959,362 62,363,953}

^{NET RESULT BEFORE
TAX: 287,748 244,448}

^{Tax :
19,780
48,300}

^{Net income/loss year: 267,968 196,148}

^{Interest Paid: 1,241,054 586,342}

^{Depreciation: 2,202 3,182}

^{Directors Emoluments: 90,750 86,740}

^{Wages and Salaries: 115,650 121,586}

^{Financial Income: 270,960 72,346}

RATIOS

^{31/03/2007 31/03/2006}

^{Turnover per employee: 21986454.00 20787984.33}

^{Fin. Charges / Turnover(%): 0.02 0.01}

^{Net Margin(%): 0.41 0.31}

^{Return on Equity(%): 9.41 7.60}

^{Return on Assets(%): 1.56 1.40}

^{Net Working capital: 2843790.00 2577844.00}

^{Cash Ratio: 0.17 0.13}

^{Quick Ratio: 0.67 0.75}

^{Current ratio: 1.20 1.23}

^{Receivables Turnover: 39.69 41.00}

^{Leverage Ratio: 5.03 4.42}

^{Net Margin :(100*Net
income loss year)/Net sales}

^{Return on Equity :(100*Net income loss year)/Total equity}

^{Return on Assets :(100*Net income loss year)/Total fixed assets}

^{Net Working capital :Total current assets - Total short term liabilities}

^{Cash Ratio :Cash
Bank securities/Total short term liabilities}

^{Quick Ratio :(Cash
Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio :Total current assets/Total short term
liabilities}

^{Receivables Turnover :(Receivable*360)/Net sales}

^{Leverage Ratio :Total
liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS
SEEN TO BE FAIR IN VIEW OF} ^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE
WITH NET WORTH IMPROVED BY} ^{10.38% FROM S$2,580,860 IN FY 2006 TO S$2,848,828 IN FY 2007. THIS
WAS} ^{DUE TO HIGHER ACCUMULATED PROFIT OF S$1,047,278 (2006:
S$779,310); A} ^{RISE OF 34.39% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY TRADE CREDITORS} ^{WHICH MADE UP 95.64% (2005: 91.11%) OF THE TOTAL CURRENT
LIABILITIES} ^{AND AMOUNTED TO S$13,713,776 (2006: S$10,395,828). THE
BREAKDOWN IS AS} ^FOLLOWS:

^{-OUTSIDERS - 2007: - (2006: S$303,323)}

^{-BILLS PAYABLE - 2007: S$13,713,776 (2006:
S$10,092,505)}

^{AMOUNT DUE TO BANKS OF S$240,315 (2006:
S$137,586) CONSISTED OF:}

^{-BANK OVERDRAFT (SECURED) - 2007: S$240,315
(2006: S$137,586)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 4.42 TIMES
TO 5.03 TIMES AS A RESULT} ^{OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE AS SEEN FROM} ^{THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT
RATIO} ^{FELL TO 1.20 TIMES, DOWN FROM 1.23 TIMES AND QUICK RATIO FELL
TO 0.67} ^{TIMES FROM 0.75 TIMES IN FY 2006.}

^{NET WORKING CAPITAL IMPROVED BY 10.32% FROM
S$2,577,844 IN FY 2006 TO} ^S$2,843,790.

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH - 2007: S$242,118 (2006: S$1,965)}

^{-CASH AT BANKS - 2007: S$242,118 (2006:
S$85,511)}

^{-FIXED DEPOSITS - UNDER LIEN - 2007:
S$2,133,170 (2006: S$1,412,696)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 5.77% FROM
S$62,363,953 IN FY 2006 TO} ^{S$65,959,362 AND NET PROFIT ROSE BY 36.62% TO S$267,968}

^{(2006: S$196,148). HENCE, NET MARGIN ROSE TO
0.41% (2006: 0.31%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED
IF REVENUE AND EARNINGS} ^{CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

NOTES TO THE FINANCIAL STATEMENTS

^{BANK FACILITY
(SECURED)}

^{THE BANK FACILITIES ARE SECURED BY WAY OF
DEED OF DEBENTURE AND} ^{FLOATING CHARGES ON RECEIVABLES FINANCED BY THE BANKERS, BOTH
PRESENT} ^{AND FUTURE OF THE COMPANY}

^{BANK OVERDRAFTS - 2007: US$1,273,000 (2006:
US$347,000)}

^{BANK FACILITIES - 2007: US$41,550,000 (2006:
US$25,700,000)}

^{THE FACILITIES ARE SECURED BY WAY OF:}

^{I)LIEN ON FIXED DEPOSITS, MARGINS AND
PERSONAL GUARANTEES OF THE} ^{DIRECTORS OF THE COMPANY}

^{II)DIRECTORS' RESIDENT PROPERTY AT 312 RIVER
VALLEY ROAD #01-06 VILLE} ^{ROYALE SINGAPORE}

^{III) A DEED OF DEBENTURE BY WAY OF FIXED AND
FLOATING CHARGE OF ALL} ^{ASSETS OF THE COMPANY}

^{THE INTEREST FOR REVOLVING CREDIT FACILITY IS
CHARGED AT BANKS'} ^{PREVAILING LIBOR/SIBOR RATE CALCULATED ON DAILY BALANCE WITH
MONTHLY} ^{RESTS PLUS ADDITION OF PERCENTAGE RANGING FROM 0.5% TO 2.5%
PER ANNUM.} ^{THE BANK'S CURRENT PRIME LENDING RATE IS ABOUT 5.50% PER
ANNUM.}

^{CONTINGENT
LIABILITY (UNSECURED)}

^{AS AT 31/03/2007, OUT OF THE FACILITIES
UTILISED WITH THE BANK,} ^{US$1,744,778 (2006: NIL) RELATED TO DISCOUNTED FOREIGN USANCE
BILLS} ^{UNDER LETTER OF CREDIT AND THE LETTER OF CREDIT OPENED BY THE
BANKS} ^{BACKED WITH LETTERS OF CREDIT OPENED BY THE BUYERS' BANKS.}

^{LIMITED EXEMPT
PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT
OWNED BY ANY CORPORATE} ^{BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY} ^{IS KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER
AMOUNT OF PRIVACY THAN A} ^{PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE} ^{REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS} ^{DIRECTORS,
SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS HAVE BEEN TABLED
BEFORE THE SHAREHOLDERS} ^{AT THE ANNUAL GENERAL MEETING.}

^{3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE
PUBLIC OF THE ACCOUNTS} ^{OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED} ^{EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE} ^COMPANY.

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE
GOVERNMENT MAY} ^{BECOME AN
EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE} ^{NATIONAL
INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM
AUDIT REQUIREMENTS IF THE} ^{STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31
MAY} ^{2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED
$2.5} ^{MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT
OF THE} ^{TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE
STILL}

^{REQUIRED TO MAINTAIN PROPER ACCOUNTING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON11/04/2001 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING
UNDER} ^{ITS PRESENT
NAMESTYLE OF "JAISREE IMPEX PTE LTD".}

^{THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF} ^{1,801,550 SHARES OF A VALUE OF
S$1,801,550.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND
CORPORATE REGULATORY}

^{AUTHORITY (ACRA) AND BE PRINCIPALLY ENGAGED
IN THE BUSINESS OF:}

^{1) WHOLESALE OF PEPPER AND OTHER SPICES}

^{2) WHOLESALE OF MEDICINAL AND PHARMACEUTICAL
PRODUCTS (WESTERN)}

^{PHARMACEUTICAL PRODUCTS WHOLESALING &
FERTILIZER CHEMICAL} ^WHOLESALING

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE
PRINCIPAL ACTIVITIES OF} ^{THE COMPANY CONSIST OF TRADING IN PEPPER AND OTHER SPICES AND
RELATED} ^PRODUCT.

^{FROM THE RESEARCH DONE, THE FOLLOWING
INFORMATION WAS GATHERED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* IMPORTER AND EXPORTER OF PRODUCTS SUCH AS
PULSES, BEANS,} ^{EDIBLE OIL,
FOOD PRODUCT, RICE}

^{* IMPORTER AND EXPORTER OF CROPS PRODUCTS}

^{* DEALER OF VARIOUS AGRI PRODUCTS,
PHARMACEUTICAL PRODUCTS}

^{* EXPORTERS OF PULSES LIKE BLACK MATPE,
YELLOW MAIZE & GREEN MUNG} ^{BEAN FROM MYANMAR TO ALL OVER THE WORLD}

^{PRODUCT DEALINGS:}

^{* VEGETABLES}

^{* OIL SEEDS}

^{* GRAINS & PLANTS}

^{* BEANS}

^{* PULSES}

^{* FERTILISERS}

^{* STEEL}

^{* BLACK MATPE}

^{* TOORWHOLE}

^{* CHICKPEAS}

^{* LENTILS}

^{* YELLOW MAIZE}

^{* STEEL SCRAP}

^{IMPORT/EXPORT COUNTRIES:}

^{* MALAYSIA}

^{* VIETNAM}

^{* CHINA}

^{* INDIA}

^{* TURKEY}

^{* INDONESIA}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: AT SIGHT TO
120 DAYS ON BANK LC TERM}

^{* TRADE AND OTHER PAYABLES : AT SIGHT TO 120 DAYS ON BANK LC TERM}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY:}

^{* SINGAPORE BUSINESS FEDERATION}

^{FROM THE TELE-INTERVIEW CONDUCTED, THE
FOLLOWING} ^{INFORMATION
WAS OBTAINED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* WHOLESALE TRADING OF MAINLY BEANS, GRAINS
AND SPICES}

^{* MINIMAL IMPORT AND EXPORT OF TYRES AND
TIMBER}

^{PRODUCT DEALINGS:}

^{* SPICES}

^{* GRAINS, PULSES, BEANS}

^{* TYRES}

^{* TIMBER}

^{INDUSTRIES SERVED:}

^{* AGRICULTURAL INDUSTY}

^{IMPORT COUNTRIES:}

^{* MYANMAR (80%)}

^{* CANADA}

^{* AUSTRALIA}

^{EXPORT COUNTRIES:}

^{* INDIA}

^{* PAKISTAN}

^{* KUALA LUMPUR}

^{* DUBAI}

^{TERMS OF PAYMENT:}

^{* CUSTOMERS: TELE-GRAPHIC TRANSFER (TT),
LETTER OF CREDIT (LC)}

^{* SUPPLIERS: TELE-GRAPHIC TRANSFER (TT), LETTER
OF CREDIT (LC)}

^{NUMBER OF EMPLOYEES:}

^{* 2008: 3}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON
24/03/2008.}

^{NUMBER OF EMPLOYEES (31 MARCH):}

^{* COMPANY - 2007: NOT AVAILABLE (2006: NOT
AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{64 CECIL STREET}

^{#06-04 IOB BUILDING}

^{SINGAPORE 049711}

^{DATE OF CHANGE OF ADDRESS: 14/04/2003}

^WEBSITE:

^EMAIL:

^{jaisree@singnet.com.sg}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THE REPORT ARE:}

^{1) MADASAMY THANGASAMY, A SINGAPORE PERMANENT
RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR
DATABASE.}

^{2) THANGASAMY LAKSHMI, A SINGAPORE PERMANENT
RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR
DATABASE.}

Singapore’s Country Rating 2007

Rating: A1

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
HIGH QUALITY COMPETITIVENESS IN ASIA
EXCELLENT BUSINESS CLIMATE
POLITICAL STABILITY.

WEAKNESSES

SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, WEAKER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES RECORDED SLOWER GROWTH.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.6% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 7.5%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF FOOD, BEVERAGES AND TOBACCO (45.7%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (23.3%). OTHER WHOLESALE SEGMENTS THAT REPORTED BETTER BUSINESS WERE WHOLESALING OF INDUSTRIAL AND CONSTRUCTION MACHINERY (9.7%) TELECOMMUNICATIONS AND COMPUTERS (8.3%) AND CHEMICALS AND CHEMICAL PRODUCTS (6.8%).

ON THE OTHER HAND, WHOLESALE SEGMENTS THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-19.4%), HOUSEHOLD EQUIPMENT AND FURNITURE (-4.4%), SHIP CHANDLERS AND BUNKERING (-3.1%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.9% IN 3Q 2007 OVER 3Q 2006. DOMESTIC SALES EXCLUDING PETROLEUM ROSE BY 9.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 3Q 2007 ROSE BY 12.2% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 3Q 2007 OVER PREVIOUS QUARTER. SHIP CHANDLERS AND BUNKERING EXPANDED BY 27.9%, MAINLY DUE TO HIGHER BUNKER SALES.

THE GENERAL WHOLESALE TRADE SECTOR FELL IN 3Q 2007 AFTER RECORDING STRONG GROWTH IN 2Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q 2007 ROSE BY 4.3%, IN COMPARISON TO 3Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 9.0%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (51.2%) AND TIMBER, PAINT AND CONSTRUCTION MATERIALS (15.5%). OTHER WHOLESALE SECTORS THAT REGISTERED BETTER BUSINESS IN 3Q 2007 WERE CHEMICALS AND CHEMICAL PRODUCTS (7.6%) AND TELECOMMUNICATIONS AND COMPUTERS (5.0%)

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING, GENERAL WHOLESALE TRADE, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED INCREASES OF 2.6% TO 6.1 %IN 3Q 2007, IN CONTRAST TO THE LOWER SALES IN THE PREVIOUS QUARTER.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 8.0% IN 3Q 2007 OVER 3Q 2006. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 12.0%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 3Q 2007 ROSE BY 4.9% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 3Q 2007 WITH THE EXCEPTION OF CHEMICALS AND CHEMICAL PRODUCTS. WHOLESALE TRADE OF FOOD, BEVERAGES AND TOBACCO, AND SHIP CHANDLERS AND BUNKERING BOTH GREW BY 17.1%. WHOLESALE OF ELECTRONIC COMPONENTS ROSE BY 12.5%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE BY 1.3%, WEAKER THAN THE 7.9% IN 2Q 2007. MOTOR VEHICLES FELL BY 6.8% COMPARED TO THE 2.4% GROWTH IN 2Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.7%, A DECLINE FROM THE 11.O% IN 2Q 2007.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THIS APPLIES PARTICULARLY TO FIRMS IN THE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD AND ELECTRICAL APPLIANCES.

AS A RESULT OF YEAR-END FESTIVE SHOPPING, A NET WEIGHTED BALANCE OF 31% OF RETAILERS EXPECTS BUSINESS TO IMPROVE IN THE COMING MONTHS. THE RETAIL SECTORS THAT ARE FORECASTING BETTER BUSINESS INCLUDING DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

SINGAPORE DEPARTMENT OF STATISTICS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions